Question

A risk practitioner is assessing risks for a newly launched digital payments platform. Historical loss data for fraud events is scarce because the platform is new, but subject matter experts have strong opinions about the relative likelihood and impact of various threat scenarios. Management wants an assessment delivered quickly to prioritize the top risks for remediation. Which risk analysis approach is MOST appropriate given these constraints?

Accepted Answer

Qualitative analysis using expert-rated likelihood and impact scales to rank the scenarios

Answer

Quantitative analysis using annualized loss expectancy derived from the limited available data

Answer

Defer the assessment until at least three years of fraud loss data has been collected

Answer

Monte Carlo simulation modeling of the fraud loss distribution across all scenarios